Slide 1: Second-Quarter 2021 Business Update
SECOND-QUARTER 2021 BUSINESS UPDATE // 08.13.21 • February 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements about the company’s strategic priorities, including its ability to build a sustainable culture, de
Slide 3: Core Business
CORE BUSINESS Advantaged Assets • Goderich mine: World’s largest underground salt mine • Winsford mine: U.K.’s largest dedicated rock salt mine • Great Salt Lake solar evaporation facility: Western Hemisphere’s largest production site of sulfate of potash (SOP), in operation for 50+ years near Ogden
Slide 4: Strategic Priorities
STRATEGIC PRIORITIES BUILD SUSTAINABLE DELIVER ON STRATEGIC CULTURE COMMITMENTS ASSESSMENT • Drive Zero Harm • Meet then exceed • Evaluation of core strengths imperative for our people customer and shareholder and opportunities to and environment expectations leverage advantaged assets • Completed s
Slide 5: Presentation of Results
PRESENTATION OF RESULTS In March 2021, the company’s board of directors approved the divestiture of the company’s South America businesses and its North America micronutrient business as part of the company’s broader asset optimization strategy. Collectively, the results of these businesses have bee
Slide 6: Year-to-Date 2021 Results
YEAR-TO-DATE 2021 RESULTS $76.9M $142.7M Operating Earnings Adjusted EBITDA1 23% $255.4M Adjusted Cash Flow from EBITDA1 Margin Operations • Salt segment revenue of ~$512M, driven by 34% increase in volumes versus prior year • Solid demand for our North American market-leading SOP product, Protassiu
Slide 7: Second-Quarter and Year-to-Date Consolidated Results
SECOND-QUARTER AND YEAR-TO-DATE CONSOLIDATED RESULTS Consolidated Results 2Q21 YTD Commentary • Year-over-year 2Q21 and YTD increases in Salt Revenue growth vs. prior year +14% +20% segment sales volume and Plant Nutrition segment Operating earnings growth vs. price drive strong revenue growth -91%
Slide 8: Second-Quarter 2021 Salt Segment
SECOND-QUARTER 2021 SALT SEGMENT Salt segment revenue up 17% vs. 2Q20 Salt Segment Results 2Q21 2Q20 %Δ • Sales volumes increased 17% primarily driven by ($ in millions) 19% higher volumes in Highway Deicing and 11% Revenue $143 $122 +17% higher volumes in Consumer & Industrial (C&I) sales Operating
Slide 9: Second-Quarter 2021 Plant Nutrition Segment
SECOND-QUARTER 2021 PLANT NUTRITION SEGMENT 2Q21 revenue 5% higher vs. 2Q20 on Plant Nutrition Segment 2Q21 2Q20 %Δ steady sales volumes and 6% higher Results ($ in millions) average sales price Revenue $54 $51 +5% • SOP-only sales price up to $610 per ton or 6% increase from 1Q21 Operating earnings
Slide 10: Balance Sheet Strength
BALANCE SHEET STRENGTH (in millions) REDUCED DEBT TO $864M* Liquidity Outstanding Debt (in millions) $1,500 $26 million of cash on hand and more $278 than $278 million of total liquidity $1,200 Outstanding Debt $227 • $300 million Revolving Senior Secured $900 Credit Facility $162 $164 $864 * • $100
Slide 11: Third-Quarter 2021 Outlook
THIRD-QUARTER 2021 OUTLOOK1 Salt Plant Nutrition 3Q21 Revenue $160M $190M $28M $36M 3Q21 EBITDA $45M $55M $5M $8M • Salt segment expected to benefit from strong volume growth and year-over-year operating earnings improvement, partially offset by slightly lower pricing • Flat 3Q21 sales volumes are e
Slide 12: Nine-Month 2021 Guidance
NINE-MONTH 2021 GUIDANCE1 Key Metrics pro forma for continuing operations (in millions of dollars unless otherwise noted) Segment Outlook Low High Salt segment sales volumes (in millions of tons) 8.6 9.0 Plant Nutrition segment sales volumes (in thousands of tons) 230 240 Consolidated and Corporate
Slide 13: Appendix
13 Ompadss Minerals: ip APPENDIX
Slide 14: Paving the Way for Long-Term Success
PAVING THE WAY FOR LONG-TERM SUCCESS PAVING THE WAY FOR LONG TERM SUCCESS GODERICH MINE LONG-TERM Five-year mining panels designed to be shuttered before requiring long- ILLUSTRATION term maintenance FUTURE MINING New bypass roadways key features DISTRICT include: • Reduced travel time from shafts t
Slide 15: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended June 30 2021 2020 Net (loss) from continuing operations $ (16.4) $ (7.2) Interest expense 15.0 15.4 Income tax expense (benefit) 1.7 (2.7) Depreciation, depletion and amor
Slide 16: Segment Performance: Salt
SEGMENT PERFORMANCE Salt Segment Performance (unaudited, in millions, except for sales volumes and prices per short ton) Three months ended June 30 2021 2020 Sales $ 142.6 $ 121.9 Operating earnings 19.2 22.5 Operating margin 13.5% 18.5% EBITDA $ 36.8 $ 39.7 EBITDA margin 25.8% 32.6% Sales volumes (
Slide 17: Segment Performance: Plant Nutrition
SEGMENT PERFORMANCE Plant Nutrition Segment Performance (unaudited, in millions, except for sales volumes and prices per short ton) Three months ended June 30 2021 2020 Sales $ 53.8 $ 51.0 Operating earnings 0.7 6.3 Operating margin 1.3% 12.4% EBITDA $ 9.8 $ 15.9 EBITDA margin 18.2% 31.2% Sales volu
Slide 18: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Salt Segment EBITDA (unaudited, in millions) Three months ended June 30 2021 2020 Segment GAAP operating earnings $ 19.2 $ 22.5 Depreciation, depletion and amortization 17.6 17.2 Segment EBITDA $ 36.8 $ 39.7 Segment sales 142.6 121.9 Segment
Slide 19: Reconciliation of Non-GAAP Information
RECONCILIATION OF NON-GAAP INFORMATION Reconciliation for Adjusted Free Cash Flow (unaudited, in millions) Six months ended June 30 2021 2020 Cash Flow From Operations $255.4 $220.7 Capital Spending (33.5) (39.6) Free Cash Flow $221.9 $181.1 One-time Cash Tax Refund (9) (55.0) Adjusted Free Cash Flo